Comprehending Your Situation With Non Credit Based Student Loans

Comprehending Your Situation With Non Credit Based Student Loans

When I first started to plan for college I knew that I would have to apply for a good amount of student loans so that I could afford the price of tuition, and the associated costs of living. This was mostly due to the fact that I didn’t really have any unique athletic, or academic talents that would allow me to get a scholarship, and because my parents didn’t have the cash to put towards my education. I ended up concluding that I would have to turn to an exorbitant amount of private student loan funding in combination with any aid I got from the government to pay for school. This plan of turning to private loans first before any federal aid I though was a smart idea, boy was I wrong!

My main issue revolved around my inability to get approved for a private student loan at all due to my bad credit. The only way around my bad credit was getting my parents to cosign, and because they weren’t willing to do so, I couldn’t get approved for any private loan funding. This worried me quite a bit, and I started to contemplate my ability to attend college at all. I intended on going to an expensive private university that cost over forty thousand dollars per year, and immediately knew that without the aid that would be provided via a private student loan funding I would not be able to attend any kind of university that cost that much.

After I had my panic attack, I gathered myself and began to regain focus. I reassessed my plans, and decided that it would be best to go to one of my backup schools, which would cost much less than the private university I was planning to attend. I would commute instead of living on-campus, and I would try and budget as closely as possible.

My primary issue was still getting the funding I would need to pay for my full tuition costs. In January I filled out a FAFSA application, to make myself eligible to receive federal aid, and I received my award letter in June. To my surprise, federal student loans are non credit based student loans that aren’t based off of your credit like private loans are. Because I was living in-state, and commuting, the federal student loans I received would easily pay for the costs of attending my backup school of choice. The point I tried to get across with this story is that you should never discount the kind of funding you can receive from federal, non credit based student loans, as these loans came to my rescue when I was in my darkest hour.

Ways To Offset A Student Loan Increase

Well the politicians are at it again. This time they’re parading money out in front of us (the stimulus bills) and saying that they’re going to help everyone, especially those needing financial aid to attend college. They say they’re worried about student loan increases, yet all they do is pay it lip service and through more taxpayer money at it.

You would think that the Politicians could figure out that if they helped students by curbing the actual cost of College, then they wouldn’t have to hold us hostage with student loans! Geez people, just help limit the increase in College itself and then you won’t have to increase spending!

But since common sense is in short demand in Washington, here are some tips to help you cut your cost so Washington doesn’t have to cut theirs. This will help you offset some of the upcoming student loan increases.

First, get rid of your credit card. When money is hard to find, too many of you College students want to run up your credit card. It’s not a good idea. Living without credit is entirely doable and once you get the hang of a cash only lifestyle, it’s really satisfying to know credit card companies don’t have you over a barrel.

Limit your lifestyle. Yeah, I said limit your lifestyle. There’s no need for you to go to Daytona Beach or the Hamptons for spring break. While you’re at it, learn to cook inside the dorm. You don’t need a Chef’s kitchen to fix simple, healthy meals. Stop eating out so much and you’ll soon find out that you have a lot more money available.

Get a job. Yeah, you read right. I know you think you don’t have time to get a job and go to school at the same time, but really, a few less kegger parties and you’ll have plenty of time to pick up a part time job and help pay your way through college. This little student loan advice alone will help you offset any increase that comes down the pipe.